Malaysia’s Boustead Heavy Industries Corporation Berhad (BHIC) has finalized the sale of three chemical tankers owned by its three subsidiaries with Jasa Merin (Labuan), SILK Holdings’ subsidiary, for a total of USD 17.1 million.

In December 2015, each of the three subsidiaries including BHIC Marine Carriers (BMC), BHIC Marine Ventures (BMV) and BHIC Marine Transport (BMT) entered into separate memoranda of agreement (MoA) with Jasa Merin in order to dispose of 2011-built chemical tankers named Chulan 1, Chulan 2 and Chulan 3. Under the MoA, the price of each of the tankers amounted to USD 5.7 million.

What initiated the sale of the tankers were high operating and maintenance costs, low charter rates, weakness in the shipping sector and the company’s inability to make money from the vessels.

The total original investment cost in the Chulan tankers was RM 140.850 million (around USD 35 million), resulting in losses for BHIC following the sale of USD 2.8 million.

The 7,299 dwt vessels feature a length of 104.99 meters and a width of 19.05 meters.